In Short:
Apple is opening up its NFC technology, previously limited to Apple Pay, to third-party app developers with the upcoming iOS 18.1. This change allows these apps to support contactless payments and digital IDs in the EU and select countries like the UK and US. However, developers must pay fees and comply with Apple’s privacy standards. Access for other regions, like India, is still unclear.
Apple Inc. is poised to introduce a significant change by allowing third-party app developers to access iPhone’s near field communication (NFC) technology, a feature that was previously exclusive to the company’s Apple Pay service. This decision follows the company’s announcement that it would permit developers in the European Union (EU) to utilize the feature, in response to an impending investigation by the European Commission. The new accessibility will enable third-party applications to support tap-to-pay functionalities on iOS, similar to their Android counterparts.
Apple to Support Third-Party Access to NFC Technology With iOS 18.1
As detailed in a press release from Apple, a forthcoming developer beta release of iOS 18.1 will grant third-party developers in the EU, as well as other regions, access to the iPhone’s NFC capabilities. Until now, only Apple Pay and Apple Wallet facilitated contactless payments, as prior versions of iOS, including iOS 17, limited access to Apple’s own applications and services.
The upcoming iOS 18.1 will enable a variety of NFC payments and transactions through third-party apps by utilizing Apple’s Secure Element microprocessor. This advancement will empower banks and other applications to facilitate contactless payments even in areas where Apple Pay is unavailable, such as India.
Beyond contactless payments, third-party apps will gain the capability to provide digital versions of transit cards, student and corporate identification, hotel and home keys, event tickets, and loyalty or rewards cards. Apple has also indicated that government IDs will eventually be supported through third-party applications.
Third-Party NFC Access Will Require Developer Fees
While the opening of NFC functionality on iOS is a commendable move, Apple has implemented certain restrictions. Access to the feature in iOS 18.1 will initially be available to developers in seven countries, in addition to the EU.
Specifically, developers in Australia, Brazil, Canada, Japan, New Zealand, the United Kingdom, and the United States will be among the first to benefit from this feature with the upcoming iOS 18.1 developer beta release. Apple has yet to disclose when other territories, including India, will gain access to this contactless payment functionality.
Developers in these specified countries will be required to pay Apple for access to the NFC and Secure Element (SE) application programming interfaces (APIs). The company stipulates that to utilize these APIs, developers must “enter into a commercial agreement with Apple, request the NFC and SE entitlement, and pay the associated fees.”
According to Apple, these prerequisites ensure that developers are compliant with regulatory standards and commit to the company’s privacy and security protocols.
In contrast, contactless payment access on Android devices has been simpler, as developers merely need to declare the use of NFC hardware in the application’s manifest file. Notably, Google and manufacturers of Android smartphones have not charged developers for NFC access, raising questions about the potential response from the EU regarding Apple’s new requirements for feature utilization on iOS.
